Australia, 29 May 2025 - A new report commissioned by Nyrstar has revealed that Australia’s ambition to become a leading exporter of critical minerals is at risk due to the threat posed to the nation’s lead and zinc refining capability, and that without direct government intervention the future of the nation’s industry is increasingly uncertain.
The report, The Economic and Strategic Importance of Multi-Metals Processing, was produced by economics research firm Mandala and highlights that safeguarding domestic lead and zinc processing capability is in the national interest, not just economically, but strategically.
The report warns that if zinc and lead processing was lost, Australia’s ability to rebuild smelting infrastructure and workforce pipelines would be near-impossible due to cost, time and skills loss.
The Mandala Report highlights the importance of lead and zinc processing, not only in delivering key industrial metals for the world, but as an essential precursor to producing critical minerals. It explains that Australia has the opportunity to leverage existing lead and zinc processing capability to produce five of Australia’s registered critical minerals (antimony, bismuth, tellurium, germanium, and indium). These critical minerals are considered vital for sectors including defence, clean energy, high tech applications, transport and advanced manufacturing, and as one of the world’s leading exporters of refined lead and zinc and the holder of the largest reserves of both metals globally, Australia is in a unique position to benefit.
Despite Australia’s multi-metals advantage, the report warns that international industrial policy settings are distorting global markets, eroding smelter operating margins globally and undermining the commercial viability of processing domestically.
Mandala’s analysis concludes that without decisive and targeted policy support to address the imbalance in global metals refining and modernise infrastructure, Australia risks falling further behind in industrial and critical minerals processing and losing its existing sovereign refining capability in lead and zinc.
The report identifies a range of policy enablers through which effective support can be deployed including those that provide the multi-metals processing industry with access to sufficient capital financing, creating affordable access to competitive domestic supplies of feedstock, and by enabling the right investments in energy and transport infrastructure.
“Australia’s multi-metals infrastructure is not only a great foundation to move downstream in the critical minerals supply chain, but it is our best chance to do so,” said Matt Howell, Chief Executive Officer of Nyrstar Australia.
“Our lead and zinc refining capabilities in Port Pirie and Hobart are more than just smelters, they are national assets.
“Governments, both State and Federal must work together with industry if we are to secure the future of these assets and avoid losing a once-in-a-generation opportunity to enter the global critical minerals supply chain.”
Access to critical minerals is fast becoming one of the defining strategic issues for advanced economies. These minerals are essential for defence technologies, clean energy systems, high tech applications, electric vehicles, and advanced manufacturing, yet global supply remains highly concentrated. The report indicates that China currently dominates between 52% and 82% of global production for the very critical minerals that lead and zinc processing can give rise to, leaving Australia and other countries vulnerable to supply chain disruptions and geopolitical risks.
Amit Singh, Managing Director of Mandala, noted Australia would not achieve its critical minerals potential without building on the upstream processes that make their extraction possible.
“Lead and zinc refining isn’t just about producing base metals, it’s the gateway to producing the critical minerals that power our clean energy and protect our nation,” Mr Singh said.
“If Australia were to lose its lead and zinc refining capability it would be almost impossible to rebuild.
“The skills, infrastructure, and supply chains that underpin Australia’s minerals processing sector have taken decades to develop. Protecting and strengthening them would represent an investment in Australia’s economic sovereignty and its ability to participate in the industries of the future.
“Other countries are moving swiftly to secure their place in critical minerals supply chains. Australia can recognise the foundation it has established in multi-metals refining and invest in that to define a competitive new role for itself in critical minerals.”
The Mandala report also highlights how aggressive industrial policy settings have reshaped global minerals markets, distorting pricing and eroding the competitiveness of smelters worldwide. The report is clear that without decisive policy support to address this imbalance and to modernise infrastructure, Australia risks falling further behind in this strategically vital sector.
Australia’s multi-metals processing infrastructure is today anchored by Nyrstar’s facilities at Port Pirie and Hobart, together forming a strategic national asset that supports thousands of skilled jobs and regional economies. These facilities generated $1.7 billion in economic value last year and supports over 6,600 Australian jobs.
The report also provides examples of precedents for direct government intervention by the Australian government to support Australia’s strategic mining and metallurgical assets on the basis of economic, strategic, security, industrial or societal need.
To learn more, read the report here.
ENDS
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About Nyrstar
Nyrstar is an international producer of critical minerals and metals essential for a low carbon future with mining, smelting and other operations located in Europe, the United States and Australia. Nyrstar’s operating business is wholly owned by Trafigura, one of the world’s leading independent commodity trading and supply chain logistics companies.
Nyrstar Australia is a national multi-metals processing and refining business, operating in Port Pirie and Hobart for over 100 years to produce lead, silver, zinc, and many other materials that are essential for the manufacture of products used by everyone, every day.
Nyrstar Australia employs over 1,300 people across processing plants in Port Pirie and Hobart that operate as two interlinked sites and play a critical role in increasing the value of the metals and minerals obtained from resources sourced from across Australia and around the world.
Contact details:
Chandran Vigneswaran - 0467 775 055
Ann Kile (Hobart) - 0409 622 316
Luke Sale (Port Pirie) - 0422 786 863
[email protected]